Refinancing Gets Even More Attractive
By AnnaMaria Andriotis | Wall Street Journal

Jan. 3, 2012 - Homeowners who have resisted the urge to refinance their mortgages until now could be rewarded for their willpower. Mortgage rates have fallen to new lows—and banks are rolling out incentives to win business.

Economic uncertainty in Europe and slow growth in the U.S. are prompting investors to pile into ultrasafe U.S. Treasurys. That, in turn, is pushing down mortgage rates, which are tied to Treasurys.

The average interest rate on a 30-year mortgage fell to 4.05% for the week ended Dec. 23, the lowest in 60 years, according to HSH Associates, a mortgage-data firm. And rates on jumbo mortgages—private loans that in most parts of the country are larger than $417,000—also have hit new lows, averaging 4.61%.

"It's hard to argue rates will get much lower than they are today," says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California, Los Angeles.
That's good news for homeowners. A person who refinanced a $400,000 30-year mortgage in February would pay an interest rate of 5.04% on average, according to HSH Associates, and fork over $2,157 a month; at the current rate of 4.05%, he'd save $236 per month, or $2,830 per year.

What's more, demand for refinancing is declining, since many homeowners already took advantage of lower mortgage rates. Applications for refinancing are 17% below this year's peak in September, according to the latest data from the Mortgage Bankers Association.

That and other factors have prompted some lenders to offer incentives to win new business—particularly regional and community banks, which are focusing more on jumbo mortgages, says Stu Feldstein, president at SMR Research, which tracks the mortgage market.

The discounts can be sizable. Regional bank Valley National Bank charges homeowners in New Jersey and eastern Pennsylvania a flat fee of $499 for closing costs on mortgages as large as $1 million. Since average closing costs on a refinance run about 2% of the total loan amount, a person with an $800,000 mortgage could save about $15,500.

A spokesman for the bank says it is aggressively marketing the discount in part to bring in more customers.

While many lenders don't refinance mortgages that are larger than about $2 million, Union Bank—which has branches in California, Oregon and Washington—refinances up to $4 million at no extra cost. (Many banks that refinance multimillion-dollar mortgages tack up to an extra quarter of a percentage point on the interest rate.)

Since November, Union Bank has also allowed borrowers to roll the costs of a refinance, like the appraisal fee and loan processing fee, into the mortgage. And borrowers whose original mortgage is from Union Bank don't have to provide all of the income documentation that other customers do in order to refinance.

In part, the bank's goal is to develop relationships with high-net-worth clients, says Stuart Bernstein, national production manager of residential lending at Union Bank.
Despite the incentives, many would-be applicants remain sidelined because they can't meet the long list of qualifications.

The home-equity requirement is one of the toughest hurdles, says Mr. Feldstein. Homeowners with at least 10% home equity make the cut, but people with less have a tougher time.
Borrowers with 10% to 19% equity in their home usually have to buy private mortgage insurance, whose cost varies based on many factors, including their credit score. A borrower with 15% equity and a FICO credit score above 720 could pay 0.44% of the total loan amount, says Keith Gumbinger, vice president at HSH Associates. On an $800,000 loan that would be $3,520 a year—eating into the potential savings of a refinance.

In December, the federal government rolled out a revamped version of the Home Affordable Refinance Program with relaxed home-equity requirements, to allow more borrowers to refinance. To qualify, the current mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae, and borrowers need to be mostly current on payments.
For regular refinancing, applicants need a FICO credit score of at least 740 to get the best rates, says Mr. Gumbinger. And they must provide copious documentation, including at least two years' worth of tax returns and proof of income as well as recent statements for assets such as retirement and brokerage accounts.

After clearing those hurdles, you might wait about 60 days for refinancing to be completed, says Mr. Gumbinger—longer than the typical 45 days. While some lenders are offering 60-day rate locks for free, others charge a quarter of a percentage point of the total loan amount for the service. On an $800,000 mortgage, that's $2,000.

Or you could opt to take your chances with a free 45-day lock and hope rates don't spike between day 46 and the date your loan closes. With the euro zone still in economic crisis and global investors rushing to the safety of U.S. Treasurys, housing-market analysts say it could be at least six months before rates rise significantly.

CUs Beat Record Industry Satisfaction Index
By NAFCU

Dec. 14, 2011 – Credit unions recently set an all-time record for their superior member service, beating out 47 other industries and increasing their lead over banks, according to data released Tuesday by the American Customer Satisfaction Index.

The index, which is a national economic indicator of U.S. consumers’ evaluations of products and services, rated the credit union industry with a score of 87 out of a possible 100 for customer satisfaction. ASCI said that is the highest score ever reached by any of the industries it assesses.

Customer satisfaction among banks decreased 1.3 percent to 75. The ACSI said the gap between the scores of large banks and credit unions is daunting. The ASCI report scored Bank of America in last place due to the bank’s revenue challenges and plans to charge new debit card fees that were later rescinded amid public outcry.

The outcry sparked Bank Transfer Day, the Nov. 5 Facebook event that encouraged consumers to shift their finances from banks to credit unions. Claes Fornell, ACSI’s founder, noted that the migration of consumers from banks to credit unions is just one of the multiple challenges the banking industry is facing.

The ACSI data suggest credit unions and smaller banks now have become an even more attractive alternative for consumers, Fornell said.

Bank Transfer Day Continues Facebook Run-up
By Jim Rubenstein

Kristen Christian, the Los Angeles art dealer who thought up Bank Transfer Day and tied it to Guy Fawkes Day. The Bank Transfer Day phenomenon popping up all over the media – mainstream and social – took some new turns Monday.

First, the actual Facebook event site, according to one user, Jeff York, former chairman of the California/Nevada Credit Union League, has now witnessed 43,000 support clicks, 8,000 actual sign-ons and “250,000 waiting or requesting to sign up.”

Credit unions in Ohio, South Carolina and Pennsylvania also have said they’re working to take advantage of the new wave of anti-bank sentiment.

“In just 13 days that is all pretty amazing and shows exactly why consumers are turning away from this kind of exploitation as pursued by the large banks,” said York, president/CEO of the $617 million Coasthills FCU of Lompoc, Calif.

As it turns out, Coasthills is one of two California CUs of choice for the now “credit union face” of Bank Transfer Day, Kristen Christian, the Los Angeles art dealer who created the original Facebook page about Bank Transfer Day a couple weeks ago and decided on Nov. 5 – Guy Fawkes Day in England – as the day.

Christian, who said she created the site out of her frustration at Bank of America’s new $5 monthly debit fee – reiterated Monday that she is not out for personal gain or notoriety but is a willing advocate for CUs “because of what they do and what they represent.”

Christian told Credit Union Times she has conducted “many interviews over the phone with radio station reporters from Texas and everywhere and now I have something on CNN with Don Lemon.”

Christian said she has opened an account at York’s CU “because that is a community close to where I grew up and made me the person I am” and at Los Angeles FCU. She said she had planned to open at First Entertainment CU of Hollywood but that application apparently went awry.

A spokesman said Christian had been repeatedly contacted about the account by phone and e-mail and is puzzled as to what went wrong but “we’re happy she is joining a credit union.”   

Christian has said she is continually learning about the movement and is appreciating “what they do” in community development. She said she is also getting help from Navy Federal CU in suburban Washington with an operations staffer there answering questions about services, pricing and CU structure.

“I do not want to identify him but he has been extremely helpful in answering all my questions, particularly every time a term is used that I don’t understand,” she said.

Christian said also she is distancing herself from the Occupy Los Angeles protest “since I really oppose the civil action they took over the weekend at a Citibank office.” Some signage was disturbed with police action, she said stressing that “this came after the organizers” promised against disruptive action.

York of Coasthills said he has talked to Christian last Friday and found her “very passionate” in her beliefs and that his credit union “welcomes her with open arms.”

If you would like to participate in "Bank Transfer Day" and switch to Fort Knox Federal Credit Union, please check out our checking page.

Supporting Our Troops
October 3, 2011

Adopt A Platoon

Above is Fort Knox Federal Credit Union's adopted platoon. We sent out multiple boxes of goodies overseas to say thank you and to let the soldiers know that we are still thinking about them!

KOSS (Keep Our Soldiers Safe) Flip-Flop Drive

LaRue County Middle School stepped up big in our KOSS Flip-Flop Drive. Together, they collected hundreds of flip-flops to send to our troops overseas. These flip flops, along with other items (pencils, candy, etc.) are being used to help our troops build relationships.

CUs A Good Deal For Consumers
August 23, 2011 | Link to story here

Consumers are “squeezed less” at credit unions, says the headline to an article posted Monday on TheStreet.com detailing the differences in consumer loan interest rates and fees charged at credit unions and banks.

“While credit unions have not been immune from a falling interest rate climate, their members are getting much better rates than bank customers are,” according to the article, which notes a decline in the average rate on bank certificates of deposit (4 percent to 0.47 percent) over the past 4 1/2 years. “While the subset of banks are in line with that national average, the same product at a credit union offers a 0.73% return – nothing mind-blowing, but still more than 55% higher than the national average for banks,” it notes. “Indeed, credit unions beat banks on deposit rates across the board.”

The article gives banks the advantage on mortgage rates, overall, but credit unions reportedly did better on other types of loans, according to the firm’s proprietary index.
For daily updates of credit union and bank loan and savings rates, visit www.culookup.com/CompareCURates.

Note:  TheStreet.com article also states that credit unions have an advantage over banks in personal unsecured loans, 36-month home equity loans and 48-month new auto loans, according to the Credit Power Index.

The 3 Best Gas Cards You Rarely Hear About
US News & World Report | Thursday, June 30, 2011

Click here to check out what US News & World Report says about our "Hidden Gem" VISA Platinum Credit Card!

The Most Popular Credit Union On Facebook
Credit Union Journal | Monday, January 17, 2011
By: Kevin Jepson

RADCLIFF, Ky. — With more than 5,500 "friends," Fort Knox FCU here is the most popular credit union on Facebook.

"In our first three weeks on Facebook, we got nearly 4,700 friends," about 70% of whom are members, said Holly Stapleton, marketing manager at the $960-million CU. "From that point on, we've had more friends than any other credit union."

Fort Knox FCU landed on Facebook about a year ago.

Better yet, about 70% of those friends are members, not other credit unions or industry groupies, said Brian Tindle, communications specialist at Fort Knox FCU.

Numbers are important gauge of the CU's success on Facebook, but more important are the emerging friendships, Stapleton suggested. Fort Knox FCU "friends" on Facebook become actual, honest-to-goodness friends-not simply social-media statistics, she said.

"We want people on Facebook to get to know us as individuals," Stapleton explained. "We want to show that we're real people, and that we're people you want to know. We're in rural Kentucky, and a friendly, familiar face in business is vital in this market."

"Facebook provides members with another way for members to communicate with us," said Tindle. Facebook provides an outlet that can't be matched by any other communications channel, he said. "A lot of members are more comfortable talking to us on Facebook than in the branch."

Fort Knox FCU chats with Facebook members in informal tones and shudders at the thought of directly selling products or services, Stapleton said. Recent posts include "Check out this lunch savings calculator," and "Come join us for fresh baked cookies."

"We're always thinking of the best way to protect and educate the member," she continued. "It's a very subtle marketing approach."

A current Facebook campaign allows members to share financial tips on "Frugal Friday." The tips encourage members to talk shop with other members, creating an entirely new social sub-community online, said Stapleton.

Fort Knox FCU also responds to posts from members about account problems, typically within 30 minutes during business hours, she said.

Inappropriate posts are rare, even though Fort Knox FCU allows friends to post "what they want," Stapleton said. "We very seldom have to block posts."

The CU isn't able to provide metrics that prove its approach is attracting new members or increasing sales. But Stapleton said she feels Facebook has helped Fort Knox FCU "diversify the membership and reach a new target demographic."

The CU's initial drive for Facebook friends has been its most successful campaign, in terms of attracting new friends, said Stapleton. Every time the CU registered 100 new friends, it gave away a $50 gift card. In two weeks, nearly 4,700 people had befriended the CU.

Facebook is the social media site of choice for Fort Knox FCU, said Stapleton. "We've dabbled in Twitter, but we don't get the same response. You can't go in to depth on Twitter." The CU also posts financial education videos on YouTube.

Reprinted with permission, Credit Union Journal.

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If you have received an audit confirmation letter:

BKD, LLP, Fort Knox Federal Credit Union’s Auditor, is now mailing audit confirmation letters to randomly selected members.  If you are selected, we would appreciate your completion and return of confirmation letter to BKD, LLP.  Please be assured that your financial information will be handled with the utmost care and confidentiality.  Thank you for your help.